need-loginSkip to main content

Hello and welcome! Our platform is specifically designed for investing in the capital market of Bangladesh.

Thank you for reading this post, don't forget to subscribe!

Top 6 reasons to invest in the Bangladesh Capital Market

  1. Strong Economic Growth: Bangladesh has one of the fastest-growing economies in the world, with an average annual GDP growth rate of 7.5% over the past decade. This growth has been driven by a strong manufacturing sector, a rapidly expanding service sector, and a young and dynamic population.
  2. Capital Market Performance: The Dhaka Stock Exchange, which is the largest stock exchange in Bangladesh, has been experiencing strong growth over the past few years. In fact, the DSE broad index has shown an impressive growth rate of over 100% over the past five years, and it has outperformed many other emerging market indices.
  3. Government initiatives: The government of Bangladesh has been actively encouraging foreign investment and has implemented several initiatives to promote investment in the country. These initiatives include tax holidays for new investments, simplified investment procedures, and a special economic zone for foreign investors.
  4. Attractive Valuations: The Bangladesh Capital Market is currently trading at an attractive valuation compared to other emerging market indices. In fact, the price-to-earnings ratio of the Dhaka Stock Exchange is lower than many other emerging market indices, making it an attractive investment opportunity.
  5. Rising middle class: Bangladesh has a large and rapidly growing middle class, which is expected to continue to drive economic growth in the coming years. This growing middle class is expected to drive demand for a range of consumer goods and services, making it an attractive market for investors.
  6. Reforms in corporate governance: The Bangladesh Securities and Exchange Commission (BSEC) has taken several steps to improve corporate governance in the country, including the introduction of mandatory corporate social responsibility reporting and the establishment of a corporate governance code for listed companies.

Conclusion:

In conclusion, investing in the Bangladesh Capital Market could be a wise decision for investors looking for high returns in an emerging market with a strong growth trajectory. With a rapidly growing economy, government initiatives to encourage investment, attractive valuations, a rising middle class, and reforms in corporate governance, the Bangladesh Capital Market offers a compelling investment opportunity. However, as with any investment, investors should conduct their own research and consult with financial professionals before making any investment decisions. Thank you for watching, and we hope you found this article informative and helpful.

Types of Investments you can invest in: 

Let’s explore the different types of investments available in the InveStar Platform 

  • Stock: A stock represents ownership in a company, and they have the potential for high returns, but also come with high risk.
  •  Bonds:  represent a loan to a company or government, and typically offer lower returns, but also come with lower risk.
  • Mutual funds and ETFs are both collections of stocks and bonds. Mutual funds are managed by professional fund managers, and typically have higher fees, while ETFs are traded on the stock exchange and have lower fees. ETFs are not yet available in Bangladesh but will be added soon! 
  • FDRs– These are fixed deposit accounts that have a specific interest rate, mainly offered by Banks and Non-Banking financial institutions. These are great instruments for people looking for a fixed rate of income every month/year. However, it is crucial to keep your money in stable , well-reputed financial organizations. 
  • Government Bonds/Shanchaypotro: These instruments offer an attractive interest rate and are usually considered the safest investment option. However, there is a cap/limit for these types of investments and investors must be aware of that. 
  •  Startup: is a young company that is in the early stages of its development, typically founded by entrepreneurs with a unique business idea or innovation. Startups are characterized by their pursuit of growth, scalability, and disruption in their respective industries. They often operate in dynamic and rapidly changing environments, seeking to bring new products, services, or business models to market. 

When choosing between these different types of investments, it’s important to consider your investment goals, risk tolerance, and investment horizon. For example, if you’re looking for long-term growth, you might consider investing in stocks, while if you’re looking for more stable returns, you might consider investing in bonds/FDRs.